CARRIER GLOBAL CORP (CARR)
US14448C1045 - Common Stock
Taking everything into account, CARR scores 3 out of 10 in our fundamental rating. CARR was compared to 39 industry peers in the Building Products industry. While CARR is still in line with the averages on profitability rating, there are concerns on its financial health. CARR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
In the past year CARR had a positive cash flow from operations.
In the past 5 years CARR has always been profitable.
In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CARR (9.31%) is better than 61.54% of its industry peers.
CARR has a better Return On Equity (25.47%) than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.64%, CARR is doing worse than 64.10% of the companies in the same industry.
CARR had an Average Return On Invested Capital over the past 3 years of 11.44%. This is in line with the industry average of 13.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROIC | 7.64% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
1.3 Margins
With a decent Profit Margin value of 13.07%, CARR is doing good in the industry, outperforming 71.79% of the companies in the same industry.
In the last couple of years the Profit Margin of CARR has declined.
Looking at the Operating Margin, with a value of 10.43%, CARR is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CARR has declined.
CARR's Gross Margin of 27.36% is on the low side compared to the rest of the industry. CARR is outperformed by 69.23% of its industry peers.
CARR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% |
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CARR is creating some value.
The number of shares outstanding for CARR has been increased compared to 1 year ago.
CARR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CARR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR has a worse Altman-Z score (2.75) than 64.10% of its industry peers.
The Debt to FCF ratio of CARR is 14.85, which is on the high side as it means it would take CARR, 14.85 years of fcf income to pay off all of its debts.
CARR has a worse Debt to FCF ratio (14.85) than 82.05% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that CARR is somewhat dependend on debt financing.
CARR has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: CARR underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.85 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.79
WACC9.62%
2.3 Liquidity
CARR has a Current Ratio of 1.08. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
CARR has a worse Current ratio (1.08) than 89.74% of its industry peers.
CARR has a Quick Ratio of 1.08. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR's Quick ratio of 0.82 is on the low side compared to the rest of the industry. CARR is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
CARR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.31%.
The earnings per share for CARR have been decreasing by -12.93% on average. This is quite bad
CARR shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.51%.
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.16% yearly.
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%4.41%
3.2 Future
CARR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.12% yearly.
Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-4.15%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
EPS Next 5Y9.12%
Revenue Next Year3.88%
Revenue Next 2Y2.59%
Revenue Next 3Y3.42%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.55, the valuation of CARR can be described as rather expensive.
CARR's Price/Earnings ratio is a bit more expensive when compared to the industry. CARR is more expensive than 64.10% of the companies in the same industry.
CARR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of CARR.
CARR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CARR is more expensive than 61.54% of the companies in the same industry.
CARR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than CARR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CARR is valued a bit more expensive than the industry average as 74.36% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.42 | ||
| EV/EBITDA | 17.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.07, CARR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CARR pays out 17.88% of its income as dividend. This is a sustainable payout ratio.
DP17.88%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
CARRIER GLOBAL CORP
NYSE:CARR (12/20/2024, 9:52:17 PM)
After market: 68.49 0 (0%)68.49
+1.8 (+2.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner Change-0.59%
Ins Owners6.62%
Ins Owner Change0%
Market Cap61.45B
Analysts74.67
Price Target84.95 (24.03%)
Short Float %1.33%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)N/A
DP17.88%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-8.31%
Max EPS beat(2)1.01%
EPS beat(4)3
Avg EPS beat(4)3.54%
Min EPS beat(4)-8.31%
Max EPS beat(4)19.59%
EPS beat(8)6
Avg EPS beat(8)3.62%
EPS beat(12)10
Avg EPS beat(12)5.76%
EPS beat(16)13
Avg EPS beat(16)6.25%
Revenue beat(2)0
Avg Revenue beat(2)-7.62%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)-6.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.72%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-3.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.21%
Revenue beat(12)4
Avg Revenue beat(12)-1.94%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)1.28%
PT rev (3m)16.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.63%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-9.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 22.12 | ||
| P/S | 2.15 | ||
| P/FCF | 73.42 | ||
| P/OCF | 44.79 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.76 |
EPS(TTM)2.79
EY4.07%
EPS(NY)3.1
Fwd EY4.52%
FCF(TTM)0.93
FCFY1.36%
OCF(TTM)1.53
OCFY2.23%
SpS31.9
BVpS16.38
TBVpS-8.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROCE | 10.01% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 43.93% | ||
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% | ||
| FCFM | 2.92% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
ROICexc(3y)14.92%
ROICexc(5y)12.88%
ROICexgc(3y)40.74%
ROICexgc(5y)35.78%
ROCE(3y)15%
ROCE(5y)13.65%
ROICexcg growth 3Y7.26%
ROICexcg growth 5Y-5.22%
ROICexc growth 3Y16.6%
ROICexc growth 5Y1.05%
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.85 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 51% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34% | ||
| Profit Quality | 22.37% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.75 |
F-Score5
WACC9.62%
ROIC/WACC0.79
Cap/Depr(3y)93.73%
Cap/Depr(5y)89.32%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.72%
Profit Quality(3y)99.98%
Profit Quality(5y)90.54%
High Growth Momentum
Growth
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%-13.48%
EPS Next Y-4.15%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
EPS Next 5Y9.12%
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%4.41%
Revenue Next Year3.88%
Revenue Next 2Y2.59%
Revenue Next 3Y3.42%
Revenue Next 5Y5%
EBIT growth 1Y45.3%
EBIT growth 3Y14.36%
EBIT growth 5Y0.77%
EBIT Next Year32.12%
EBIT Next 3Y16.11%
EBIT Next 5Y8.2%
FCF growth 1Y-29.19%
FCF growth 3Y12.81%
FCF growth 5Y2.03%
OCF growth 1Y-10.5%
OCF growth 3Y13.13%
OCF growth 5Y3.58%